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For the first time in 300 years, the UK's GDP has faced its largest drop, UK Finance Minister Rishi Sunak said. The country's economy collapsed by 11.3%. It is expected that in 2021 humanity will defeat coronavirus and then the country's economy will begin to recover and grow by 5.5%, in 2022 - by 6.6%, and in the next years - by 2.3%, 1.7%, and 1.8%.
According to Mr. Sunak, it will be possible to reach pre-crisis levels only by the fourth quarter of 2022. The pandemic has caused great damage to the country's economy, which will take a long time to recover.
Moreover, to combat COVID-19 and its consequences, the UK has built up a huge debt of £394 billion, or 19% of GDP. This is a record amount of borrowing in peacetime.
By the way, in the UK, more than 1.5 million people were infected with coronavirus, 55,900 of them died.
The British currency has stabilized in the GBP/USD pair above the 1.33 level. The chances that the UK and the European Union will reach an agreement on a trade deal are increasing. Investment bank JPMorgan recently raised its Brexit trade estimates from 60% to 80%.
On Wednesday, the GBP/USD currency pair continues to move within the sideways range near local highs. For November 26, 2020, it is expected to resume the upward trend, a breakdown of the 1.34 level will indicate an increase in the pound rate to the key level of 1.35.
Also, there is information that British Prime Minister Boris Johnson is ready to meet with President of the European Commission Ursula von der Leyen to discuss all issues related to Brexit.
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